IReit Global launches equity fundraising to raise S$126.7m for France property acquisition

IREIT Global on Wednesday said it is issuing a non-underwritten placement of 11.4 million units at 61.55 Singapore cents per unit to Bond Capital Partners, to raise around S$7 million.

The placement is part of its equity fundraising exercise to raise gross proceeds of S$126.7 million, IReit's manager said in a stock exchange filing.

The Europe-focused real estate investment trust (Reit) will also be launching an underwritten pro rata and non-renounceable preferential offering for eligible existing unitholders, to raise S$119.7 million under the equity fundraising exercise.

The preferential offering will be done on the basis of 214 units for every 1,000 units held, at an issue price of 59.5 cents per unit, the manager said.

Net proceeds from the equity fundraising will be used to partially finance the acquisition of 27 retail properties in France, which cost around S$195.7 million, the Reit's manager said.

In April, IReit, through its wholly-owned subsidiary Fit 2, entered into a conditional sale agreement to acquire Decathlon's properties in France for 110.5 million euros (S$176.8 million).

Part of the proceeds will also be used to finance future capital expenditure and repay debt, the manager added.

Once the fundraising exercise is complete, IReit's total number of issued units is expected to be 951.3 million. The new units issued will be listed and quoted on the mainboard of the Singapore Exchange at 9am on Wednesday.

Units of IReit Global closed on Tuesday at 64.5 cents, up 0.5 cent or 0.8 per cent.